LumiGrow Opportunity May 2019 Disclaimer The material contained in - - PowerPoint PPT Presentation

LumiGrow Opportunity

May 2019

Disclaimer

The material contained in this document is a presentation of general information about Enevis’ activities current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting

• r refraining from acting as a result of this material is accepted by Enevis, including any of its related bodies corporate.

This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Enevis Group. These forward-looking statements are based on estimates, projections and assumptions made by the Enevis Group about circumstances and events that have not yet taken place. Although Enevis believes the forward-looking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Enevis’ control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). Enevis makes no representation or warranty as to the accuracy of any forward-looking statements in this document and undue reliance should not be placed upon such statements. The forward-looking statements in this document speak only as of the date of this document. Enevis does not intend to update the forward-looking statements in this document in the future.

Enevis Snapshot

COMPANY INFORMATION

Financial Position

1H19 revenue was ~$20m with expectation of similar revenue in 2H19

Achievements 1H19

Successful integration of Lumex business and expansion into the South Australian market

Flagship Projects

State Library of Victoria redevelopment, Melbourne Star lighting upgrade, Victoria Racing Club lighting, Joan Kirner Hospital audio visual, Rialto Towers audio visual, lighting for multiple Melbourne train stations

Brands Target Markets

Primary markets are Australia, New Zealand and Asia

Product/Service Categories

LED lighting, lighting controls, street lighting and columns, architectural lighting, electrical, audio visual, communications, immersive AV solutions, energy rebate auditing

Sales Network and employees Sales offices in Victoria, New South Wales, Queensland, South Australia and Western Australia.

105 employees business-wide

Enevis applies its technological and lighting expertise to create innovative, energy efficient solutions in its chosen markets.

• material increases in yield
• vastly smaller land use
• higher quality produce
• higher returns for farmers
• consistency in quality and yield
• pest and weed control
• energy and water efficiencies
• better flavour and longer shelf life
• growing out of season produce
• reduced impact on the land
• foreign plants in local area
• close proximity to market for

transport and labour force

The Opportunity

Traditional Cropping Protected Cropping with LumiGrow Lighting

The economic benefits of protected cropping are significant, delivering multiple times the yield of a traditional

• crop. LumiGrow lighting is the next revolution in protected cropping, delivering further quantum increases in

yield and quality. The benefits include:

Protected Cropping Enevis has been selected by US grow lighting manufacturer LumiGrow to exclusively market its sophisticated LED lighting solutions in Australia, New Zealand and parts of Asia. Protected cropping or controlled environment horticulture delivers greater consistency, yield and efficiencies.

Overview of Australian/NZ Protected Cropping Markets Market

30 500 200 580 21 10 19 12 36 8 23 2

100 200 300 400 500 600 QLD NSW VIC SA WA TAS

Greenhouse Area under Cultivation - Australia (ha)

Vegetables Flowers

80 680 200 650 30 25 112 170 135 47 94 29

• 100

100 300 500 700 900 QLD NSW VIC SA WA TAS

Number of Growers - Australia

Vegetables Flowers

~30% of vegetable growers use protected cropping 20% of total cut flower and vegetable market Aside from the widely-understood benefits of protected cropping under LED lighting, Australia/NZ lends itself to such an approach because:

• it is prone to drought and extreme weather events
• its size means that significant efficiencies in the supply chain,

such as transport, can be achieved

• there is minimal regulation of the industry
• the size of the market and the potential for transition from

traditional horticulture methods is vast

• the market has historically grown at 4-6% pa, but demand for LED

grow lights is expected to be significantly higher as a result of: − the new cannabis market − retrofitting of existing greenhouses.

Information from Protected Cropping Australia & in-house research

$1.56B pa farmgate value

Market size and potential make Australia, New Zealand and Asia an attractive opportunity for Enegrow.

LumiGrow Snapshot

COMPANY INFORMATION

Description

Established in 2007, LumiGrow is a horticultural LED lighting business providing smart lighting and cloud-based software solutions, including adjustable spectrum LEDs (the latest in horticultural lighting technology) for large-scale glasshouses, research facilities and horticultural applications.

Location

Emeryville, California, a tech hub near Silicone Valley.

Technology

Developed by scientists, researchers and growers to fully understand and capitalise on the ways light can be used to optimise crop production as well as how lighting efficiencies can be achieved in controlled environment growing.

Markets

Primary market is America and Canada, with a new supply agreement entered into with Enegrow to cover Australia, New Zealand and parts of Asia.

Customer Base

Over 20,000 fixtures controlled in the cloud for 150 customers across crops that include but are not limited to vines, cannabis, ornamentals and leafy greens.

Products

Lighting, sensors, software, mountings, financing, services.

Only developer of smart LED grow lighting systems in North America which offer precise spectrum control to match the changing needs of plants throughout their growth cycle.

LumiGrow Product Suite

LumiGrow partners with the world’s largest growers and leading research institutions to understand how light can be used to

• ptimise crop production and stay ahead of the curve.
• User friendly software for custom

lighting solutions with energy analytics

• Controlled from smart phone, tablet or

computer

• Cloud based software solution
• Industry’s first smart power supply

connects with control modules and sensors

• Automate perfect lighting conditions

in the greenhouse or create light recipes for indoor environments

• Provide ideal lighting conditions

needed for plant growth and development

• Multiple mounting options for

high-light or low-lights crops

TopLight™ TopLight™ Node smartPAR™ Software

LumiGrow and the Enevis Platform

Finance partner for SAAS and LAAS Working capital Corporate services support Networks and relationships Lighting technical knowledge Financial management Sales and marketing expertise

Established Required

Organisational structure Enevis’ existing corporate platform and technical capabilities will be complemented by specific horticultural skills and resources

Enevis has the established structure, resources, relationships and financial management to successfully introduce and expand LumiGrow in Australia, New Zealand and parts of Asia.

Customer service and help desk Project management

The Enegrow Business Model

Products & Services Markets & Sectors

Install & Commission System

Greenfields and Retrofit Suppliers to the Protected Cropping market Growers Other

• Glasshouse manufacturers
• Energy services providers
• Water systems and irrigation

providers

• Indoor horticulture
• Large scale operators
• Mid-market operators
• Emerging market of

Cannabis growers

• Research laboratories
• Large scale plant nurseries
• Vineyards

Ongoing Customer Care Supply & Comm’n Software Design & Audit Lighting Solution Sell Lighting Solution Finance Lighting Solution Supply & Comm’n Software Install & Commission System Install & Commission System Sell Lighting Solution Sell Lighting Solution Design & Audit Lighting Solution Design & Audit Lighting Solution Ongoing Customer Care

Enegrow’s product suite offers customers flexible sales packages from lighting sales to fully financed solutions.

Nectar Farms and LumiGrow

Nectar Farms is an agri-business dedicated to transforming the current Australian farming model through glasshouse farming. It specialises in designing, building and

• perating high quality technical glasshouses

utilising innovative green technology, such as LumiGrow LED grow lighting, to establish a portfolio of farms which grow high margin crops on low grade land within close proximity to population centres.

Nectar Farms evaluated all LED grow light technologies in the global marketplace and selected LumiGrow as the preferred partner for all three stages of its Stawell project. Business Project

A 20 hectare glasshouse is planned for construction near Stawell in regional Victoria, which once completed will be the largest greenhouse in the Southern

• Hemisphere. The project will be built in

three stages and will use a LumiGrow horticultural LED lighting and control solution to optimise the growth cycles of plants grown at the facility. The first stage will be the development of a 10 hectare glasshouse to grow tomatoes.

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THANK YOU

Further Information:

• www.lumigrow.com

Case Studies:

• https://www.lumigrow.com/superior-fresh/
• https://www.lumigrow.com/kynd-cannabis/